10 - Impairment Flashcards
1
Q
Recoverable amount for impairment is?
A
Higher of FVLCOD and Value In Use (present value of future cash flows)
2
Q
If FVLCOD is greater than CA?
A
No impairment
3
Q
Loss for a CGU?
A
Allocated in this order :
Goodwill allocated to the CGU
Other assets on a pro rate basis based on CA
4
Q
How to pro rate impairment?
A
Impairment/CA (inc central assets) = %
% x intangible asset = allocate to that
Rest allocate to PPE
Can allocate full amount of goodwill
